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Agenda 12/10/2013 Item #16H14 12/10/2013 16.H.14. Co ftr County MEMO Date: December 3, 2013 To: Leo E. Ochs, Jr., County Manager From: Georgia Hiller, Chairwoman Subject: Reconsideration Item Please place on the December 10, 2013 BCC agenda a reconsideration of Item 17C (later moved to Item 9D) from the November 12, 2013 BCC Meting. l `\/ Packet Page -2297- 12/10/2013 16.H.14. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.H.16.H.14. Item Summary: Reconsideration request by Commissioner Hiller regarding November 12, 2013 Item 17C, moved to Item 9D, which reads: Recommendation to adopt an ordinance amending Chapter 74 of the Collier County Code of Laws and Ordinances, which is the Collier County Consolidated Impact Fee Ordinance, providing for modifications directed by the Board of County Commissioners related to a change in the timing of payment of impact fees to issuance of a certificate of occupancy,the inclusion of Water and Wastewater Impact Fees as eligible for the "Impact Fee Program for Existing Commercial Redevelopment" and including additional minor updates or corrections related to "Adult Only Communities," obsolete refund provisions, reimbursement agreements and the "former" Goodland Water District. Meeting Date: 12/10/2013 Prepared By Name: BrockMaryJo Title: Executive Secretary to County Manager, CMO 12/3/2013 4:52:25 PM Submitted by Title: Executive Secretary to County Manager, CMO Name: BrockMarvio • 12/3/2013 4:52:26 PM Approved By Name: OchsLeo Title: County Manager Date: 12/3/2013 5:17:10 PM Packet Page -2298- 12/10/2013 16.H.14. EXECUTIVE SUMMARY Recommendation to adopt an ordinance amending Chapter 74 of the Collier County Code of Laws and Ordinances,which is the Collier County Consolidated Impact Fee Ordinance, providing for modifications directed by the Board of County Commissioners related to a change in the timing of payment of impact fees to issuance of a certificate of occupancy,the inclusion of Water and Wastewater Impact Fees as eligible for the "Impact Fee Program for Existing Commercial Redevelopment" and including additional minor updates or corrections related to "Adult Only Communities," obsolete refund provisions, reimbursement agreements and the"former" Goodland Water District. OBJECTIVE: That the Board of County Commissioners (Board) adopts an ordinance amending Chapter 74 of the Collier County Code of Laws and Ordinances (Code), which is the Collier County Consolidated Impact Fee Ordinance, providing for modifications directed by the Board of County Commissioners related to a change in the timing of payment of impact fees to issuance of a certificate of occupancy, the inclusion of Water and Wastewater Impact Fees as eligible for the "Impact Fee Program for Existing Commercial Redevelopment" and including additional minor updates or corrections related to "Adult Only Communities," obsolete refund provisions,reimbursement agreements and the"former"Goodland Water District. CONSIDERATIONS: On May 28, 2013, at the regular meeting of the Board of County Commissioners, an item was presented related to impact fees which was prepared in accordance with direction provided by the Collier County Board of County Commissioners on February 12, 2013, Item 10K, and March 12, 2013, Item 10E. Additional information was also presented at a workshop of the Board of County Commissioners on June 4, 2013. Arising from the regular agenda item and the workshop, the Board provided direction on several items for future consideration and action. The items are as follows: 1. Change the timing of payment from issuance of a building permit to certificate of occupancy (CO) or certificate of completion (CC). This change will allow for the payment of impact fees at a later date. The benefit of this change to developers. builders, and property owners is that it reduces the time that the cost of impact fees is carried. The payment of impact fees will now be no later than concurrent with the issuance of a CO or CC,which allows for occupancy/use of the building. 2. Expand the current "Impact Fee Program for Existing Commercial Redevelopment" to include impact fee assessments for Water and Wastewater, meeting the specified criteria. This change will allow businesses occupying certain existing buildings to participate in a program that provides for"changes of use" without the requirement to pay additional Water and Wastewater Impact Fees. This Program has been in effect since 2009 for other impact fee categories. 3. Provide additional land use categories for small businesses. This future change will create additional sub-categories, by square footage, for some of the most commonly used land use categories (General Office and Retail). This type of Packet Page-3245- Packet Page -2299- 12/10/2013 16.H.14. concept was used previously for the creation of the "Small Medical Office" category. On October 8, 2013 (Item 16F7), the Board authorized the County Manager and the County Attorney to advertise for future consideration an ordinance amending Chapter 74 of the Code to incorporate the proposed changes to the Impact Fee Program. The proposed Ordinance amendment provides for changes to all relevant provisions to move the timing of payment from building permit issuance to CO. These changes do not prohibit earlier payment of impact fees at the request of the applicant. The date used to determine the basis of the impact fee assessment remains at building permit application. Further, the incorporated areas of the County, which collect impact fees on behalf of the County by way of interlocal agreements continue to be governed by the terms of the existing agreements. In the event that the cities are interested in revising their policies and procedures to collect at CO, the interlocal agreements may be modified,which requires Board and City Council approval. A change to the "Impact Fee Program for Existing Commercial Redevelopment" has been incorporated to include assessments for Water and Wastewater, meeting the specified criteria. The program is eligible to businesses as follows: 1. Development is proposed within a lawfully existing building which has had a Certificate of Occupancy issued for at least 3 years. Impact fees for the existing building must have been paid the then applicable impact fees at time of construction; and 2. Proposed development is solely within the existing building and does not include the addition of any new square footage. 3. Demolition and reconstruction projects are not eligible for this program. 4. For the purposes of water and wastewater impact fees,projects that require an existing meter to be upsized are not eligible for this program. This change allows for changes of use in existing buildings without the requirement to pay additional impact fees. This Program is proposed to be extended to Water and Wastewater Impact Fees, provided that the Program criteria are met and no upsize of the meter is requires. Program activity will be tracked and reported annually to the Board (related to Water and Wastewater Impact Fees) similar to the tracking and reporting that is conducted annually for the other applicable impact fees. Also included as part of the proposed amendment are a few small administrative items as follows: 1. Updated definition and exemption language for "Adult only community"to reflect State licensing as evidence of age restrictions. 2. Removal of an obsolete reference to refund provisions 3. Inclusion of language to complete a partially missing provision related to reimbursement agreements for developments that are unable to commence. Packet Page-3246- Packet Page -2300- 12/10/2013 16.H.14. 4. Updating the status of the Goodland Water District to "former" in accordance with action taken by the Board on December 11, 2012 (Item 17C). As discussed as part of Item 16F7 (October 8, 2013), the expanded rate sub-categories are not included in the proposed ordinance as they are being developed as part of the ongoing Road Impact Fee Update Study, which is estimated to be complete by late Fall of 2013. During the (future) Board review of the Update Study the consultant will have finalized rates for the new sub-categories as well as details specific to the development of the sub-categories and associated rates. Similar rate structures can also be developed for other impact fee types (i.e. Government Buildings,EMS, etc.) as they move through the update study process. If approved,the proposed ordinance will take effect on December 1,2013 and will apply to both new applications and permits that are in process. Additionally, staff will provide notification to the customer at permit issuance that impact fees will be due at CO (or CC) of the building permit. FISCAL IMPACT: The fiscal impacts of the proposed changes are as follows: Changing timing of payment of impact fees from permit issuance to CO/CC. This change does not eliminate the requirement to pay impact fees; rather it moves the payment to a later point in time. The fiscal impact of this change is only related to timing of the receipt of the impact fees. Currently, the average time between issuance of a building permit and CO ranges from 6 to 12 months, with longer time periods for large commercial and multi-family buildings. Some of the delay in receipt of impact fees related to this change may be offset by the efficiencies implemented by the Growth Management Division that have streamlined processes and allows permits to move quickly through the review and inspection requirements. However, delays in construction related to availability of materials, labor, etc. may result in a longer timeframe between issuance and CO. Expand the current "Impact Fee Program for Existing Commercial Redevelopment" to include Water and Wastewater Impact Fees. The fiscal impact of this change is estimated to be approximately 9%, totaling $800,000, between the two funds, based on recent permit activity and actual impact fee collections. This estimated amount is subject to changes in permitting activity and trends in types of land uses constructed. As provided above. Program activity wil be tracked and reported annually to the Board (related to Water and Wastewater Impact Fees), similar to the tracking and reporting that is conducted annually for the other applicable impact fees. The Program is also reviewed annually by the Board with respect to extension or sunset of the Program. The next Board review is scheduled for June of 2014. Provide additional land use categories for small businesses. The fiscal impact of this change will be provided during the presentation of the Road Impact Fee Update Study, based on the determination of the proposed rates. GROWTH MANAGEMENT IMPACT: Objective 2 of the Capital Improvement Element (CIE) of the Collier County Growth Management Plan (GMP) states: "Future development will bear a proportionate cost offacility improvements necessitated by growth." Packet Page-3247- Packet Page-2301- 12/10/2013 16.H.14. The proposed changes maintain the fairness and equity of the impact fee provisions while providing programmatic improvements and overall benefit to the residents and businesses of Collier County. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. -JAK RECOMMENDATION: That the Board of County Commissioners adopts an ordinance amending Chapter 74 of the Collier County Code of Laws and Ordinances, which is the Collier County Consolidated Impact Fee Ordinance, providing for modifications directed by the Board of County Commissioners related to a change in the timing of payment of impact fees to issuance of a certificate of occupancy, the inclusion of Water and Wastewater Impact Fees as eligible for the "Impact Fee Program for Existing Commercial Redevelopment" and including additional minor updates or corrections related to "Adult Only Communities," obsolete refund provisions, reimbursement agreements and the"former"Goodland Water District." PREPARED BY: Amy Patterson, Impact Fee Manager, Office of Management and Budget. Attachments: 1)Proposed Ordinance Amendment Packet Page-3248- Packet Page -2302-